FTC Launches On-Site Probe into Coupang 8 Days After Withdrawal Amid Allegations of Fair Trade Act Violations

It has been confirmed that the Fair Trade Commission (FTC) has launched another on-site investigation into Coupang, just 8 days after withdrawing "empty-handed."

According to industry sources today (Sept. 2), the FTC conducted an on-site inspection at Coupang's headquarters in Gwangjin-gu, Seoul, yesterday (Sept. 1).

It is reported that the FTC secured materials related to suspected violations of the Fair Trade Act, such as whether Coupang unfairly interfered with the business activities of other operators.

Coupang is known to have complied with this on-site investigation without refusal.

From August 19 to 24, the FTC had launched an on-site investigation against Coupang to secure materials related to suspected violations of the Large-Scale Retail Business Act. However, Coupang withdrew after refusing to comply, stating that it had not received prior notice of the investigation.

It is known to be the first time that an on-site investigation fell through due to pushback from a target company since the Large-Scale Retail Business Act was enacted in 2011.

Coupang refused, arguing under the Framework Act on Administrative Investigations that on-site investigations related to violations of the Large-Scale Retail Business Act require prior notice, and even filed a lawsuit with the court seeking the cancellation of the FTC's on-site investigation decision and disposition.

However, the Fair Trade Act, under which the FTC raised suspicions and conducted the on-site investigation this time, is specified as an exception to the Framework Act on Administrative Investigations.

As it is stipulated that on-site investigations can be conducted without separate prior notice to the target company, Coupang appears to have complied with the investigation.

An FTC official stated, "We cannot confirm anything regarding individual matters."

Meanwhile, the court has temporarily suspended the effect of the FTC's decision to conduct an on-site investigation into Coupang's suspected violations of the Large-Scale Retail Business Act until September 23.

A hearing is scheduled for today to listen to the opinions of both sides and decide whether to finalize the suspension of execution.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.